Association Scam: How it Works

graphic of how association scam works

What it is

A scam where fake associations sell cheap health policies that don't pay claims.

How the Scam Works

  1. Scammers set up an association and buy cheap health policies with poor coverage.
  2. The association hires telemarketers to sell "memberships" using fake "get a quote" websites.
  3. Telemarketers call you and use high-pressure tactics to sell the policy.
  4. You file a claim for a medical service and discover the policy provides limited benefits, has no medical network, and will not cover the cost. You pay the bill.

Result

You end up paying for medical bills that should have been covered.